The average amount of miles you drive per year is one of the main factors determining your car insurance quote. For example, your rates might be lower if you don’t always drive to work and no longer commute because those who drive less often have a lower chance of being involved in an accident. In contrast, those who drive many miles yearly may pay more because the more time you spend driving, the higher the chance you’ll get into an accident.
How Do Insurance Companies Check The Mileage On Car Insurance?
Insurance companies will ask you how many miles you have on your car. However, some carriers may only request for mileage during your initial application process. In contrast, others may ask for mileage updates throughout the year.
Don’t lie about this, even though you are tempted to lie. You are hurting yourself if you lie because you might file a claim that your mileage can’t substantiate. If you lie and you’re caught, your insurance claim can be legitimately denied, leaving you responsible for all damages.
How To Calculate Mileage On A Car Insurance Policy?
You need to calculate your mileage accurately if you want to avoid problems and still pay a fair rate. Discuss with your car insurance agent if your mileage varies yearly. Apart from this, calculating your mileage is straightforward. Once you buy your car insurance, report the beginning mileage on your car.
Calculate how many miles you drive to work. Then, add personal usage to your mileage. It’s good to include your road trip for vacations. The difference may not increase your car insurance rate, but you will have the right coverage.